2015, and 89
2017 as amended by Legal Notices 279
2019, 6
2021, 74
2022, 300
2023 and 129 and 302
2024 and 102 and 171
2025. 1.
these regulations is the Recovery and Resolution Regulations.
these regulations is to implement Directive 2014/59/EU
the European Parliament and
the Council
15 May 2014 establishing a framework for the recovery and resolution
credit institutions and investment firms and amending Council Directive 82/891/EC, Directives 2001/24/EC, 2002/47/EC, 2004/ 25/EC, 2005/56/EC, 2007/36/EC and 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012,
the European Parliament and
the Council. Citation and scope. Amended by L.N. 279
2019; L.N. 300
2023.
entities: Provided that when establishing and applying the requirements
these regulations, and when using the different tools at their disposal in relation to an entity, and subject to specific provisions, the Resolution Committee and the Authority shall take account
the nature
its business, its shareholding structure, its legal form, its profile, size and legal status, its interconnectedness to other institutions or to the financial system in general, the scope and the complexity
its activities, its membership
an institutional protection scheme (IPS) that meets the requirements
the CRR or other cooperative mutual solidarity systems as referred to in Article 113
that Regulation and whether it exercises any investment services or activities as defined in paragraph
Directive 2014/65/EU.
Regulation (EU) No 648/ 2012. 2.
the CRR; "affected creditor" means a creditor whose claim relates to a liability that is reduced or converted to shares or other instruments
ownership by the exercise
the write-down or conversion power pursuant to the use
the bail-in tool; "aggregate amount" means the aggregate amount by which the Interpretation. Amended by L.N. 279
2019; L.N. 6
2021; L.N. 74
2022; L.N. 300
2023; L.N. 302
assets, rights or liabilities
an institution under resolution to an asset management vehicle in accordance with regulation 42; "the Authority" means the Malta Financial Services Authority established under the Act; "automatic acceleration" means a situation in which a covered bond automatically becomes immediately due and payable upon the insolvency or resolution
the issuer and in respect
which the covered bond investors have an enforceable claim for repayment at a time earlier than the original maturity date; "back-to-back transaction" means a transaction entered into between two group entities for the purpose
transferring, in whole or in part, the risk generated by another transaction entered into between one
those group entities and a third party; "bail-inable liabilities" means the liabilities and capital instruments that do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments
an institution or entity referred to in paragraphs (b), (c) and (d)
the definition "entity", that are not excluded from the scope
the bail-in tool by virtue
regulation 44
the write-down and conversion powers in relation to liabilities
an institution under resolution in accordance with regulation 43; "branch" has the same meaning as that assigned to it in point
the CRR; " b r i d g e i n st i t u t i o n " m e a n s a l e g a l p e r s o n t h a t m e e t s t h e requirements laid down in regulation 40
ownership issued by an institution under resolution or assets, rights or liabilities
an institution under resolution to a bridge institution, in accordance with regulation 40; "the BRRD" means Directive 2014/59/EU
the European Parliament and
the Council
15th May 2014 establishing a framework for the recovery and resolution
credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, as amended from time to time, and includes any implementing measures, implementing technical standards, regulatory technical standards, guidelines and similar measures that have been or may RECOVERY AND RESOLUTION [ S.L.330.09 be issued thereunder; "business day" means a day other than a Saturday, a Sunday or a public holiday in Malta; "the CBD" means Directive 2013/36/EU
the European Parliament and
the Council
26 June 2013 on access to the activity
credit institutions and the prudential supervision
credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder: Provided that, for the purposes
prudential supervision and resolution
investment firms: (
the CRD throughout these regulations shall be construed as referring to the corresponding provisions
the IFD; "Central Bank" means the Central Bank
Malta as defined by the Central Bank
Malta Act; Cap. 204. "central counterparty" has the same meaning as that assigned to it in point
Regulation (EU) No 648/2012; "combined buffer requirement" shall have the same meaning as that assigned to it in point
the CRD; "Common Equity Tier 1 capital" means Common Equity Tier 1 capital as calculated in accordance with Article 50
the CRR; "Common Equity Tier 1 instruments" means capital instruments that meet the conditions laid down in Article 28
the CRR; "company" means a limited liability company constituted in Malta in accordance with the Commercial Partnerships Ordinance * or the Companies Act, or any law which may from time to time be in force, or a company registered, licensed or holding an equivalent authorisation in another country outside Malta under the laws
any country provided that such company, if not constituted in Malta, would qualify to be so registered or licensed under the laws
Malta; "conditions for resolution" means the conditions referred to in regulation 32
the consolidated situation as defined in point
the CRR; "consolidating supervisor" means consolidating supervisor as defined in point
the CRR; "conversion rate" means the factor that determines the number
shares or other instruments
ownership into which a liability
a specific class will be converted, by reference either to a single instrument
the class in question or to a specified unit
value
*Repealed by Act XXV
1995 (Chapter 386). Cap. 386. 3 4 [ S.L.330.09 RECOVERY AND RESOLUTION a debt claim; "core business lines" means business lines and associated services which represent material sources
revenue, profit or franchise value for an institution or for a group
which an institution forms part; "covered bond" means a covered bond as defined in point
Directive (EU) 2019/2162
the European Parliament and
the Council
27 November 2019 on the issue
covered bonds and covered bond public supervision and amending Directives 2009/ 65/EC and 2014/59/EU or, with regard to an instrument that is issued before 8 July 2022, a bond as referred to in Article 52
Directive 2009/65/EC
the European Parliament and
the Council
13 July 2009 on the coordination
laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), as applicable on the date
its issue; "covered deposits" means covered deposits as defined in point
Directive 2014/49/EU; "the CRD" means Directive 2013/36/EU
the European Parliament and
the Council
26 June 2013 on access to the activity
credit institutions and the prudential supervision
credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder: Provided that, for the purposes
prudential supervision and resolution
investment firms: (
the CRD throughout these regulations shall be construed as referring to the corresponding provisions
the IFD;; "credit institution" shall have the same meaning as that assigned to it in point
the CRR, with the exception
those entities referred to in Article 2
the CRD; "crisis management measure" means a resolution action or the appointment
a special manager under regulation 35 or a person under regulation 51
powers to direct removal
deficiencies or impediments to recoverability under regulation 6
powers to address or remove impediments to resolvability under regulations 17 or 18, the application
an early intervention measure under regulation 27, the appointment
a temporary administrator under regulation 29 or the exercise
the write-down or conversion powers under regulation 59; "critical functions" means activities, services or operations the discontinuance
which is likely, in one or more Member States, to lead to the disruption
services that are essential to the real economy or to disrupt financial stability due to the size, market RECOVERY AND RESOLUTION [ S.L.330.09 share, external and internal interconnectedness, complexity or cross-border activities
the institution or group, with particular regard to the substitutability
those activities, services or operations; "cross-border group" means a group having group entities established in more than one Member State; "the CRR" means Regulation (EU) No 575/2013
the European Parliament and
the Council
26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012, as am ended from tim e to tim e, and incl udes any implementing measures that have been or may be issued thereunder; "debt instruments" referred to in paragraphs (g) and (j)
regulation 63
transferable debt, instruments creating or acknowledging a debt, and instruments giving rights to acquire debt instruments; "deposit" means a sum
money paid-in on terms under which it will be repaid, with or without interest or a premium and either on demand or at a time or in circumstances agreed by or on behalf
the person making the payment and the person receiving it; "deposit guarantee scheme" means a deposit guarantee scheme introduced and
ficially recognised by a Member State pursuant to Article 4
Directive 2014/49/EU; "depositor" has the same meaning as that assigned to it in point
Directive 2014/49/EU; "derivative" has the same meaning as that assigned to it in point
Regulation (EU) No 648/2012; "Directive 2002/47/EC" means Directive 2002/47/EC
the European Parliament and
the Council
6 June 2002 on financial collateral arrangements, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Directive 2014/49/EU" means Directive 2014/49/EU
the European Parliament and
the Council,
16 April 2014, on deposit guarantee schemes, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Directive 2014/65/EU" means Directive 2014/65/EU
the European Parliament and
the Council,
15 May 2014, on markets in financial instruments and amending Directive 2002/92/ EC and Directive 2011/61/EU, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Directive 97/9/EC" means Directive 97/9/EC
the European Parliament and
the Council
3 March 1997 on investorcompensation schemes, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Directive 98/26/EC" means Directive 98/26/EC
the European Parliament and
the Council
19 May 1998 on settlement 5 6 [ S.L.330.09 RECOVERY AND RESOLUTION finality in payment and securities settlement systems, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "director" includes an individual occupying the position
director
a company, by whatever name he may be called, empowered to carry out substantially the same functions in relation to the direction
the company as those carried out by a director and in respect
a company registered, licensed or holding an equivalent authorisation outside Malta includes a member
a local board or agent or representative
that company; "EBA" means the European Banking Authority established by Regulation (EU) No 1093/2010; "EEA State" means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on the 2nd May, 1992 as amended by the Protocol signed at Brussels on the 17th March, 1993 and as amended by any subsequent acts; "eligible deposits" has the same meaning as that assigned to it in point
Directive 2014/49/EU; "eligible liabilities" means bail-inable liabilities that fulfil, as applicable, the conditions
regulation 45B or paragraph (a)
regulation 45F
point (b)
the CRR; "emergency liquidity assistance" means the provision by a central bank
central bank money, or any other assistance that may lead to an increase in central bank money, to a solvent financial institution, or group
solvent financial institutions, that is facing temporary liquidity problems, without such operation being part
monetary policy; "entity" means: (
a credit institution or investment firm, or
a company referred to in paragraph (c) or (d), and is covered by the supervision
the parent undertaking on a consolidated basis in accordance with Articles 6 to 17
the CRR; (
institutions that are established outside the European Union in accordance with the specific conditions laid down in this regulation; "ESRB" means the European Systemic Risk Board established by Regulation (EU) No 1092/2010; RECOVERY AND RESOLUTION [ S.L.330.09 "European Central Bank" means the European Central Bank established in accordance with Article 13
t he Treaty on European Union; "European regulatory authority" means an authority which is situated in a country or territory outside Malta that is in a Member St a t e a n d i s e m p o w e r e d b y l a w o r r e g u l a t i o n t o s u p e r v i s e investment firms or credit institutions; "European resolution authority" means an authority which is situated in a country or territory outside Malta that is in a Member State and which exercises any function corresponding to the functions
the Resolution Committee under these regulations; "extraordinary public financial support" means State Aid within the meaning
the Treaty on the Functioning
the European Union, or any other public financial support at supranational level, which, if provided at national level, would constitute State aid, that is provided in order to preserve or restore the viability, liquidity or solvency
an institution or
an entity or
a group
which such an institution or entity forms part; "financial contracts" includes the following contracts and agreements: (a) securities contracts, including: (i) contracts for the purchase, sale or loan
a security, a group or index
securities; (ii) options on a security or group or index
securities; (iii) repurchase or reverse repurchase transactions on any such security, group or index; (
a commodity or group or index
commodities for future delivery; (ii) options on a commodity or group or index
commodities; (iii) repurchase or reverse repurchase transactions on any such commodity, group or index; (c) futures and forwards contracts, including contracts (other than a commodities contract) for the purchase, sale or transfer
a commodity or property
any other description, service, right or interest for a specified price at a future date; (
recurrent dealing in the swaps or derivatives markets; (e) inter-bank borrowing agreements where the term
the borrowing is three months or less; (f) master agreements for any
the contracts or agreements referred to in paragraphs (a) to (e); "financial holding company" means a financial holding company as defined in point
the CRR; "financial institution" means a financial institution as defined in point
the CRR; "financial instrument" shall have the same meaning as that assigned to it in point
the CRR; "global systemically important institution" or "G-SII" has the same meaning as that assigned to it in point
the CRR; "group" means a parent undertaking and its subsidiaries; "group entity" means a legal entity that is part
a group; "group financing arrangement" means the financing arrangement or arrangements
the Member State
the group-level resolution authority; " g r ou p - l e v e l r e s o l ut i o n a u t ho r i t y " m e a n s t he R e s o l u ti o n Committee when Malta is the consolidating supervisor or the resolution authority in the Member State in which the consolidating supervisor is situated; "group recovery plan" means a group recovery plan drawn up and maintained in accordance with regulation 7; "group resolution" means either
the following: (a) the taking
resolution action at the level
a parent undertaking or
an institution subject to consolidated supervision, or (b) the coordination
the application
resolution tools and the exercise
resolution powers by the Resolution Committee and the European resolution authorities concerned in relation to group entities that meet the conditions for resolution; "group resolution plan" means a plan for group resolution drawn up in accordance with regulations 12 and 13; "group resolution scheme" means a plan drawn up for the purposes
group resolution in accordance with regulation 91; "hybrid capital" means a form
debt that has been substituted for equity; "the IFD" means Directive (EU) 2019/2034
the European Parliament and
the Council
27 November 2019 on the prudential supervision
investment firms and amending Directives 2002/87/EC, 2009/65/EC, 2011/61/EU, 2013/36/EU, RECOVERY AND RESOLUTION [ S.L.330.09 2014/59/EU and 2014/65/EU, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "the IFR" means Regulation (EU) 2019/2033
the European Parliament and
the Council
27 November 2019 on the prudenti al requirements
invest ment f irm s and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/ 2014 and (EU) No 806/2014, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; and "impaired asset" means an asset that is worth less on the market than the value listed on an institutions balance sheet and which will result in a write-down
that same asset account to the stated market price; "institution" means a credit institution or an investment firm; "institution under resolution" means an institution, a financial institution, a financial holding company, a mixed financial holding company, a mixed-activity holding company, a parent financial holding company in a Member State, a Union parent financial holding company, a parent mixed financial holding company in a Member State, or a Union parent mixed financial holding company, in respect
which a resolution action is taken; "institutional protection scheme" or "IPS" means an arrangement that meets the requirements laid down in Article 113
the CRR; "instruments
ownership" means shares, other instruments that confer ownership, instruments that are convertible into or give the right to acquire shares or other instruments
ownership, and instruments representing interests in shares or other instruments
ownership; "insurance undertaking" shall have the same meaning as that assigned to it in point
the CRR; "intra-group guarantee" means a contract by which one group entity guarantees the obligations
another group entity to a third party; "investment firm" means an investment firm as defined in point
article 4
the IFR, which is subject to the initial capital requirement
€750,000, and excluding firms which are not authorised to provide any
the investment services or to perform any
the investment activities listed in points
Section A
Annex I to Directive 2014/65/EU; "investor" means an investor within the meaning
point
Directive 97/9/EC
the European Parliament and
the Council; "liquidation entity" means a legal person established in the Union in respect
which the group resolution plan or, for entities that are not part
a group, the resolution plan, provides that the entity is to be wound up under normal insolvency proceedings, or an entity, within a resolution group other than a resolution entity, in respect
which the 9 10 [ S.L.330.09 RECOVERY AND RESOLUTION group resolution plan does not provide for the exercise
write-down and conversion powers; "material subsidiary" has the same meaning as that assigned to it in point
the CRR; "Member State" means a Member State
the European Union and includes an EEA State; "micro, small and medium-sized enterprises" means micro, small and medium-sized enterprises as defined with regard to the annual turnover criterion referred to in Article 2
the Annex to Commission Recommendation 2003/361/EC; "mixed-activity holding company" means a mixed-activity holding company as defined in point
the CRR; "mixed financial holding company" means a mixed financial holding company as defined in point
the CRR; "netting arrangement" means an arrangement under which a number
claims or obligations can be converted into a single net claim, including close-out netting arrangements under which, on the occurrence
an enforcement event (however or wherever defined) the obligations
the parties are accelerated so as to become immediately due or are terminated, and in either case are converted into or replaced by a single net claim, including ‘closeout netting provisions’ as defined in point (n)(i)
Directive 2002/47/EC and ‘netting’ as defined in point (k)
Directive 98/26/EC; "normal insolvency proceedings" means collective insolvency proceedings which entail the partial or total divestment
a debtor and the appointment
a liquidator or an administrator normally applicable to institutions under Maltese law and either specific to those institutions or generally applicable to any natural or legal person; "overseas appropriate authority" means an authority
a Member State identified in accordance with Article 61
the BRRD that is responsible under the national law
that State for making the determinations referred to in regulation 59
the CRR; "own funds requirements" means the requirements laid down in regulations 92 to 98
the CRR; "parent financial holding company in a Member State" means a parent financial holding company in a Member State as defined in point
the CRR; "parent mixed financial holding company in a Member State" means a parent mixed financial holding company in a Member RECOVERY AND RESOLUTION [ S.L.330.09 State as defined in point
the CRR; "parent undertaking" means a parent undertaking as defined in point
the CRR; "recipient" means the entity to which shares, other instruments
ownership, debt instruments, assets, rights or liabilities, or any combination
those items are transferred from an institution under resolution; "recovery capacity" means the capability
an institution to restore its financial position following a significant deterioration; "recovery plan" means a recovery plan drawn up and maintained by an institution in accordance with regulation 5; "regulated market" has the same meaning as that assigned to it in point
Directive 2014/65/EU; "Regulation (EU) No 1093/2010" means Regulation (EU) No 1093/2010
the European Parliament and
the Council
24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/ EC and repealing Commission Decision 2009/78/EC, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "Regulation (EU) No 648/2012" means Regulation (EU) No 648/ 2012
the European Parliament and
the Council
4 July 2012 on OTC derivatives, central counterparties and trade repositories, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder; "relevant capital instruments" for the purposes
and Chapter V
the BRRD, means Additional Tier 1 instruments and Tier 2 instruments; "relevant parent institution" means a parent institution in a Member State, a Union parent institution, a financial holding company, a mixed financial holding company, a mixed-activity holding company, a parent financial holding company in a Member State, a Union parent financial holding company, a parent mixed financial holding company in a Member State, or a Union parent mixed financial holding company, in relation to which the bail-in tool is applied; "relevant third-country authority" means an authority established in a third-country which is responsible for carrying out functions comparable to those
the Resolution Committee or the Authority pursuant to these regulations; "resolution" means the application
a resolution tool or a tool referred to in regulation 37
the resolution objectives referred to in regulation 31
the definition "entity" in this sub-regulation under resolution pursuant to regulations 32 or 33, the application
a resolution tool, or the exercise
one or more resolution powers; 11 12 [ S.L.330.09 RECOVERY AND RESOLUTION "resolution college" means a college established in accordance with regulation 88 to carry out the tasks referred to in regulation 88
the following: (a) a legal person established in the European Union, that in accordance with regulation 12, is identified by the Resolution Committee as an entity in respect
which the resolution plan provides for resolution action; or (b) an institution that is not part
a group that is subject to consolidated supervision pursuant to Articles 111 and 112
the CRD, in respect
which the resolution plan drawn up pursuant to regulation 10 provides for resolution action; "resolution group" means: (
other resolution entities; or (iii) entities established in a third country that are not included in the resolution group in accordance with the resolution plan and their subsidiaries; or (b) credit institutions permanently affiliated to a central body and the central body itself when at least one
those credit institutions or the central body is a resolution entity, and their respective subsidiaries; "resolution objectives" means the resolution objectives referred to in regulation 31
business tool" means the mechanism for effecting a transfer by the Resolution Committee
shares or other instruments
ownership issued by an institution under resolution, or assets, rights or liabilities,
an institution under resolution to a purchaser that is not a bridge institution, in accordance with regulation 38; "secured liability" means a liability where the right
the creditor to payment or other form
performance is secured by a charge, pledge or lien, or collateral arrangements including liabilities arising from repurchase transactions and other title transfer collateral arrangements; "senior management" means senior management as defined in point
the CRD; RECOVERY AND RESOLUTION [ S.L.330.09 "set-
f arrangement" means an arrangement under which two or more claims or obligations owed between the institution under resolution and a counterparty can be set
f against each other; "significant branch" means a branch that would be considered as significant in a host Member State in accordance with Article 51
the CRD; "subordinated eligible instruments" means instruments that meet all the conditions referred to in Article 72a
the CRR with the exception
paragraphs
the said Regulation; "subsidiary" shall have the same meaning as that assigned to it in point
the CRR, and for the purposes
applying regulations 7, 12, 17, 18, 45 to 45L, 59 to 62, 91 and 92 to resolution groups, includes, where and as appropriate, credit institutions that are permanently affiliated to a central body, by the central body itself, and their respective subsidiaries, taking into account the way in which the resolution groups mentioned above comply with regulation 45E
supervisors established in accordance with Article 116
the CRD; "systemic crisis" means a disruption in the financial system with the potential to have serious negative consequences for the internal market and the real economy. All types
financial intermediaries, markets and infrastructure may be potentially systemically important to some degree; "termination right" means a right to terminate a contract, a right to accelerate, close out, set-
f or net obligations or any similar provision that suspends, modifies or extinguishes an obligation
a party to the contract or a provision that prevents an obligation under the contract from arising that would otherwise arise; "third country" means a country that is not a Member State or an EEA state; "third-country institution" means an entity, the head
fice
which is established in a third country, that would, if it were established within the Union, be covered by the definition
an institution; "third-country parent undertaking" means a parent undertaking, a parent financial holding company or a parent mixed financial holding company, established in a third country; "third-country regulatory authority" means an authority which is i n a c o u n t r y o r t e r r i t o r y t h a t i s n o t a M e m b e r St a t e a n d i s responsible for carrying out functions comparable to those
the Authority pursuant to these regulations; "third-country resolution authority" means an authority which is i n a c o u n t r y o r t e r r i t o r y t h a t i s n o t a M e m b e r St a t e a n d i s responsible for carrying out functions comparable to those
the Resolution Committee pursuant to these regulations; "third-country resolution proceedings" means an action under the law
a third country to manage the failure
a third-country institution or a third-country parent undertaking that is comparable, in terms
objectives and anticipated results, to resolution actions 13 14 [ S.L.330.09 RECOVERY AND RESOLUTION under these regulations; "Tier 2 instruments" means capital instruments or subordinated loans that meet the conditions laid down in Article 63
the CRR; "title transfer financial collateral arrangement" means a title transfer financial collateral arrangement as defined in point (b)
Directive 2002/47/EC; "transfer powers" means the powers specified in paragraphs (c) or (d)
regulation 63
ownership, debt instruments, assets, rights or liabilities, or any combination
those items from an institution under resolution to a recipient; "Union branch" means a branch located in a Member State
a third-country institution; "Union parent financial holding company" means an EU parent financial holding company as defined in point
the CRR; "Union parent institution" means an EU parent institution as defined in point
the CRR; "Union parent mixed financial holding company" means an EU parent mixed financial holding company as defined in point
the CRR; "Union parent undertaking" means a Union parent institution, a Union parent financial holding company or a Union parent mixed financial holding company; "Union State aid framework" means the framework established by Articles 107, 108 and 109
the Treaty on the Functioning
the European Union and regulations and all Union acts, including guidelines, communications and notices, made or adopted pursuant to Article 108
the Treaty on the Functioning
the European Union; "Union subsidiary" means an institution which is established in a Mem ber Stat e and which is a subsid iary
a thi rd-count ry institution or a third-country parent undertaking; "winding up" means the realisation
assets
an institution or entity referred to in paragraphs (b), (c) or (d)
the definition "entity" in this sub-regulation; "write-down and conversion powers" means the powers referred to in regulation 59
regulation 63
a credit institution or investment firm, or
a company RECOVERY AND RESOLUTION [ S.L.330.09 15 referred to in paragraphs (c) and (d), and is covered by the supervision
the parent undertaking on a consolidated basis in accordance with Articles 6 to 17
the CRR; (
institutions that are established outside the Union in accordance with the specific conditions laid down in these regulations. 3. (1 It shall be the duty
the Resolution Committee to carry out the functions and duties assigned to it by the Act and these regulations. The Resolution Committee shall be empowered to apply the resolution tools and exercise the resolution powers.
and manage the affected institution with the objective
restoring the institution, or parts
its business, to ongoing and sustainable viability; (c) require, where necessary, the adoption
appropriate measures such as a change to an institution’s business practices, structure or organization; (
critical services and functions by requiring other companies in the same group to continue to provide essential services to the entity in resolution, any successor or an acquiring entity; (
shareholders
the institution in resolution, including the requirement for approval by shareholders
particular transactions in order to permit a merger, acquisition, sale
substantial business operations, recapitalization or other measures to restructure and dispose
the institution’s business or its liabilities and assets; Powers and duties
the Resolution Committee. 16 [ S.L.330.09 RECOVERY AND RESOLUTION (
assets and liabilities
a failing entity; (j) establish a temporary bridge institution to take over and continue operating certain critical functions and viable operations
a failed institution; (
critical functions either by recapitalizing the entity that is no longer viable, or by capitalizing a newly established entity or bridge institution to which these functions have been transferred following closure
the non-viable institutions; (m) temporarily stay the exercise
early termination rights that may otherwise be triggered upon entry
an institution into resolution or in connection with the use
resolution powers; (n) impose a moratorium with a suspension
payments to unsecured creditors and customers, other than for payments and property transfers to central counterparties and those entered into the payment, clearing and settlement systems, and to stay on creditor actions to attach assets or otherwise collect money or property from the institution, while protecting the enforcement
eligible netting and collateral arrangements; (o) ensure that the ‘no creditor worse
f principle’ is respected; (p) effect the closure and orderly wind-up
the whole or part
a failing institution with timely pay out or transfer
insured deposits and prompt access to transaction accounts and to safeguard client funds.
this regulation, the Resolution Committee shall adopt and make public any necessary relevant internal rules, including rules regarding professional secrecy and information exchanges between the different functional areas.
resolution decisions.
the Ministry responsible for Finance prior to taking any decisions that may have a direct fiscal impact or which have systemic implications. The Resolution Committee shall inform the RECOVERY AND RESOLUTION [ S.L.330.09 17 Minister responsible for finance
any decisions taken pursuant to the Act where transposing the BRRD or to these regulations.
such a decision in all the Member States where the institution or the group operates and shall minimise the negative effect on the financial stability and negative economic and social effects in those Member States.
its specific functions and responsibilities. 4.
an institution could have, due to the nature
its business; its shareholding structure; its legal form; its risk profile, size and legal status; its interconnectedness to other institutions or to the financial system in general; the scope and the complexity
its activities; its membership
an IPS or other cooperative mutual solidarity systems as referred to in Article 113
the CRR and any exercise
investment services or activities as defined in point
Directive 2014/65/EU, and whether its failure and subsequent winding up under normal insolvency proceedings would be likely to have a significant negative effect on financial markets, on other institutions, on funding conditions, or on the wider economy, the Authority and the Resolution Committee shall determine: (a) the contents and details
recovery and resolution plans provided for in regulations 5 to 12; (b) the date by which the first recovery and resolution plans are to be drawn up and the frequency for updating recovery and resolution plans which may be lower than that provided for in regulation 5
the information required from institutions as provided for in regulation 5
the Schedule to these regulations; (d) the level
detail for the assessment
resolvability provided for in regulations 15 and 16, and Section C
the Schedule to these regulations.
simplified obligations shall not, in itself, affect the Authority’s and, where relevant, the Resolution Committee’s powers to take a crisis prevention measure or a crisis management measure.
the way sub-regulations
: (a) the requirements
regulations 5 to 14 to institutions affiliated to a central body and wholly or partially exempted from prudential requirements in accordance with Article 10
the CRR; (b) the requirements
regulations 5 to 9 to institutions which are members
an IPS.
regulations 5 to 14 on a consolidated basis to the central body and institutions affiliated to it within the meaning
the CRR; (ii) require the IPS to fulfil the requirements
regulations 5 to 9 in cooperation with each
its waived members. (b) For the purpose
this sub-regulation, any reference in regulations 5 to 14 to a group shall include a central body and institutions affiliated to it within the meaning
the CRR and their subsidiaries, and any reference to parent undertakings or institutions that are subject to consolidated supervision pursuant to regulation 3
the Supervisory Consolidation Regulations, shall include the central body. S.L. 371.15
Council Regulation (EU) No 1024/2013
15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision
credit institutions or which constitutes a significant share in the financial system
Malta shall draw up their own recovery plans in accordance with regulations 5 to 9 and shall be subject to individual resolution plans in accordance with regulations 10 to 14. (b) For the purposes
this sub-regulation, the operations
an institution shall be considered to constitute a significant share
Malta’s financial system if any
the following conditions are met: RECOVERY AND RESOLUTION [ S.L.330.09 19 (i) the total value
its assets exceeds EUR 30 000 000 000; or (ii) the ratio
its total assets over the GDP
Malta exceeds 20%, unless the total value
its assets is below EUR 5 000 000 000. 5.
a group subject to consolidated supervision pursuant to regulations 3 and 4
the Supervisory Consolidation Regulations, shall draw up and maintain a r e c o v e r y p l a n p r o v i di n g f o r m e a s u r e s t o be t a k e n b y t h e institution to restore its financial position following a significant deterioration
its financial situation. Recovery plans shall be considered to be a governance arrangement within the meaning
article 17B
the Banking Act for credit institutions and the Investment Services Rules for Investment Services Providers for investment firms.
the institution, its business or its financial situation, which could have a material effect on, or necessitates a change to, the recovery plan. The Authority may require institutions to update their recovery plans more frequently.
extraordinary public financial support.
how and when an institution may apply for the use
central bank facilities, subject to the conditions addressed by the plan, and identify those assets which would be expected to qualify as collateral.
the Schedule to these regulations, and any other additional information which may be required by the Authority on a case by case basis.
recovery actions as well as a wide range
recovery options, and shall contemplate a range
scenarios
severe macroeconomic and financial stress relevant to the institution’s specific conditions, including systemwide events and stress, specific to individual legal persons and to groups.
financial contracts to which the institution concerned is a party to.
directors
an institution shall assess and approve the recovery plan before submitting it to the Authority. Recovery plans. S.L. 371.15 Cap. 371. 20 [ S.L.330.09 Assessment
recovery plans. RECOVERY AND RESOLUTION 6.
the Authority that those plans meet the criteria set out in sub-regulation
each recovery plan, and after consulting the relevant European regulatory authorities where significant branches are located, review it and assess the extent to which it satisfies the requirements laid down in regulation 5 and the following criteria: (a) the implementation
the arrangements proposed in the plan is reasonably likely to maintain or restore the viability and financial position
the institution or
the group, taking into account the preparatory measures that the institution has taken or has planned to take; (b) the plan and specific options within the plan are reasonably likely to be implemented quickly and effectively in situations
financial stress and avoiding to the maximum extent possible any significant adverse effect on the financial system, including in scenarios which would lead other institutions to implement recovery plans within the same period.
the recovery plans, the Authority shall take into consideration the appropriateness
the institution’s capital and funding structure to the level
complexity
the organisational structure and the risk profile
the institution.
the institution and make recommendations to the Authority with regard to those matters.
the group
its assessment and require the institution to submit, within two months, extendable with the Authority’s approval by one month, a revised plan demonstrating how those deficiencies or impediments are addressed: Provided that, before requiring an institution to resubmit a recovery plan, the Authority shall give the institution the opportunity to state its opinion on that requirement. (b) Where the Authority does not consider the deficiencies and impediments to have been adequately addressed by the revised plan, it may direct the institution to make specific changes to the plan. RECOVERY AND RESOLUTION
the recovery plan. (b) If the institution fails to identify such changes within the time-frame set by the Authority, or if the competent authority assesses that the actions proposed by the institution would not adequately address the deficiencies or impediments, the Authority may direct the institution to take any measures it considers to be necessary and proportionate, taking into account the seriousness
the deficiencies and impediments and the effect
the measures on the institution’s business. (c) The Authority may, without prejudice to regulation 9
the Banking Act (Supervisory Review) Regulations and regulation 16
the Investment Services Act (Supervisory Review) Regulations, direct the institution to: S.L. 371.16 S.L. 370.15 (i) reduce the risk profile
the institution, including liquidity risk; (
the core business lines and critical functions; (v) make changes to the governance structure
the institution: Provided that such measures do not preclude the Authority from taking additional measures under Maltese law.
appeal. 7.
a recovery plan for the group headed by the Union parent undertaking as a whole. The group recovery plan shall identify measures that may be required to be implemented at the level
the Union parent undertaking and each individual subsidiary.
the Supervisory Consolidation Regulations; (
subsidiaries.
the group as a whole, or any institution
the group, when it is in a situation
stress so as to address or remove the causes
the distress and restore the financial position
the group or the institution in question, at the same time taking into account the financial position
other group entities. (b) The group recovery plan shall include arrangements to ensure the coordination and consistency
measures to be taken at the level
the Union parent undertaking, at the level
the entities referred to in paragraphs (c) and (d)
the definition "entity" in regulation 2
subsidiaries and, where applicable, in accordance with the CRD at the level
significant branches.
recovery options setting out actions to address those scenarios provided for in regulation 5
the scenarios, the group recovery plan shall identify whether there are obstacles to the implementation
recovery measures within the group, including at the level
individual entities covered by the plan, and whether there are substantial practical or legal impediments to the prompt transfer
own funds or the repayment
liabilities or assets within the group.
directors
the entity drawing up the group recovery plan pursuant to sub-regulation
group recovery plans. 8.
subsidiaries; or (b) where it is responsible for a subsidiary, together with the European regulatory authority acting as the consolidating supervisor and the European regulatory authorities
other subsidiaries, if any, after consulting the authorities referred to in regulation 7
the Supervisory Consolidation Regulations and with the European regulatory authorities
significant branches insofar as is relevant to the significant branch, review the group recovery plan and assess the extent to which it satisfies the requirements and criteria laid down in regulations 6 and 7. That assessment shall be made in accordance with the procedure established in regulation 6 and with this regulation and shall take into account the potential impact
the recovery measures on financial stability in Malta and in all the Member States where the group operates.
subsidiaries; or (b) where it is responsible for a subsidiary, together with the European regulatory authority acting as the consolidating supervisor and the European regulatory authorities
other subsidiaries, if any, on: (i) the review and assessment
the group recovery plan; (ii) whether a recovery plan on an individual basis shall be drawn up for institutions that are part
the group; and (iii) the application
the measures referred to in regulation 6
the transmission by the consolidating supervisor
the group recovery plan in accordance with regulation 7
Regulation (EU) No 1093/2010.
a joint decision between the authorities mentioned in sub-regulation
the date
transmission, on the review and assessment
the group recovery plan or on any measures the Union parent undertaking is required to take in accordance with regulation 6
the relevant European regulatory authorities expressed during the four-month period. The Authority, where it is the consolidating supervisor shall notify the decision to the Union parent undertaking and to the other relevant European regulatory authorities: S.L. 371.15 23 24 [ S.L.330.09 RECOVERY AND RESOLUTION Provided that, if at the end
the four-month period, any
the authorities referred to in sub-regulation
Regulation (EU) No 1093/2010, the Authority, where it is the consolidating supervisor, shall defer its decision and await any decision that the EBA may take in accordance with Article 19
that Regulation, and shall take its decision in accordance with the decision
the EBA. The four-month period shall be deemed to be the conciliation period within the meaning
Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end
the four-month period or after a joint decision has been reached. In the absence
a decision by the EBA within one month, the decision
the Authority as the consolidating supervisor shall apply.
a s u b s i d i a r y, i n t h e a b s e n c e o f a j o i n t d e c i s i o n b e t w e e n t h e authorities mentioned in sub-regulation
the date
transmission on: (
the measures referred to in regulation 6
the four-month period, any
the European regulatory authorities concerned have referred a matter mentioned in sub-regulation
Regulation (EU) No 1093/2010, the Authority, where it is responsible for the supervision
the subsidiary, shall defer its decision and await any decision that the EBA may take in accordance with Article 19
that Regulation, and shall take its decision in accordance with the decision
the EBA. The fourmonth period shall be deemed to be the conciliation period within the meaning
Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end
the four-month period or after a joint decision has been reached. In the absence
a decision made by the EBA within one month, the decision
the Authority, where it is responsible for the supervision
the subsidiary at an individual level, shall apply.
the BRRD, the Authority and the other European regulatory authorities which did not disagree with such a decision, may reach a joint decision on a group recovery plan covering entities licensed in terms
the Banking Act and the Investment Services Act, as well as those e n t i t i e s a u t h o r i se d b y t h e E u r o p ea n r e g u l a t o r y a u t h o r i t i e s mentioned in this sub-regulation.
a joint decision in accordance with Article 8
the BRRD shall be recognised as conclusive and shall be RECOVERY AND RESOLUTION [ S.L.330.09 25 applied by the Authority in Malta.
the date
transmission, request the EBA to assist the authorities mentioned in sub-regulation
Regulation (EU) No 1093/2010, only in relation to the assessment
recovery plans and implementation
the measures
paragraphs (c)(i), (ii) and (iv)
regulation 6
Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end
the four-month period or after a joint decision has been reached. In the absence
an EBA decision within one month, the decisions
the European regulatory authority acting as the consolidating supervisor taken in accordance with Article 8
the BRRD and, or,
the European regulatory authorities responsible for subsidiaries taken in accordance with Article 8
the BRRD shall apply. 9.
regulations 5 to 8, each recovery plan shall include a framework
indicators established by the institution which identifies the points at which appropriate actions referred to in the plan may be taken. Recovery plan indicators.
the recovery plans in accordance with regulations 6 and 8.
a qualitative or quantitative nature relating to the institution’s financial position and shall be capable
being monitored easily.
the indicators.
directors
the institution considers it to be appropriate in the circumstances; or (b) refrain from taking such action where the board
directors
the institution does not consider it to be appropriate in the circumstances
the situation.
the jurisdictions in which any significant branches are located insofar as is relevant to the significant branch, shall draw up a resolution plan for each institution that is not part
a group subject to consolidated supervision pursuant to regulations 3 and 4
the Supervisory Consolidation Regulations. The resolution plan shall provide for the resolution actions which the Resolution Resolution plans. Amended by: L.N. 6
2021. S.L. 371.15 26 [ S.L.330.09 RECOVERY AND RESOLUTION Committee may take where the institution meets the conditions for resolution. Information referred to in sub-regulation
failure may be idiosyncratic or may occur at a time
broader financial instability or system wide events. The resolution plan shall not assume any
the following: (a) extraordinary public financial support besides the use
the financing arrangements established in accordance with regulation 100; (
how and when an institution may apply, in the conditions addressed by the plan, for the use
central bank facilities and shall identify those assets which would be expected to qualify as collateral.
the plans.
the institution or to its business or its financial position that could have a material effect on the effectiveness
the plan or otherwise necessitates a revision
the resolution plan: Provided further that, the review referred to in this subregulation shall be carried out after the implemenation
resolution actions or the exercise
powers referred to in regulation 59.
the BRRD to the institution. It shall include, quantified whenever appropriate and possible: (a) a summary
the key elements
the plan; (b) a summary
the material changes to the institution that have occurred after the latest resolution information was filed; (c) a demonstration
how critical functions and core business lines could be legally and economically separated, to the extent necessary, from other functions so as to ensure continuity upon the failure
the institution; (d) an estimation
the time-frame for executing each RECOVERY AND RESOLUTION [ S.L.330.09 material aspect
the plan; (e) a detailed description
the assessment
resolvability carried out in accordance with subregulation
any measures required pursuant to regulation 17 to address or remove impediments to resolvability identified as a result
the assessment carried out in accordance with regulation 15; (g) a description
the processes for determining the value and marketability
the critical functions, core business lines and assets
the institution; (h) a detailed description
the arrangements for ensuring that the information required pursuant to regulation 11 is up to date and at the disposal
the Resolution Committee at all times; (i) an explanation by the Resolution Committee as to how the resolution options could be financed without the assumption
any
the following: (i) extraordinary public financial support besides the use
the financing arrangements established in accordance with regulation 100; (
the different resolution strategies that could be applied according to the different possible scenarios and the applicable timescales; (k) a description
critical interdependencies; (l) a description
options for preserving access to payments and clearing services and other infrastructures and, an assessment
the portability
clients positions; (m) an analysis
the impact
the plan on the employees
the institution, including an assessment
any associated costs, and a description
envisaged procedures to consult staff during the resolution process, taking into account national systems for dialogue with social partners where applicable; (
essential operations and systems for maintaining the continuous functioning
the institution’s operational processes; (
sub-regulation 6, the Resolution Committee shall take into account the deadline to comply with the requirement referred to in article 104b
the CRD.
the definition "entity" in regulation 2
financial contracts to which it is a party. The Resolution Committee may specify a time-limit within which the institution or entity referred to in paragraphs (b), (c) or (d)
the definition "entity" in regulation 2
producing those records. The same time-limit shall apply to all institutions and all entities referred to in paragraphs (b), (c) or (d)
the definition "entity" in regulation 2
financial contracts as referred to in the definition "financial contracts" under regulation 2
the Authority. Information for the purpose
resolution plans and cooperation from the institution. 11.
resolution plans; (b) provide them, either directly or through the Authority, with all
the information necessary to draw up and implement resolution plans. In particular the Resolution Committee may require, among other information, the information and analysis specified in Section B
the Schedule to these regulations.
the information referred to in sub-regulation
2021. 12.
subsidiaries, or in its capacity as the resolution authority
a subsidiary, together with the European resolution authority acting as the group-level resolution authority and the European resolution authorities
other subsidiaries, if any, and after consulting the European resolution authorities
significant branches, insofar as is relevant to the significant branch, draw up group resolution plans. The group resolution plan shall identify measures to be taken in respect
: RECOVERY AND RESOLUTION (
the group and that are established in the European Union; (
the definition "entity" in regulation 2
the BRRD, the subsidiaries that are part
the group and that are established outside the European Union; Provided that, the resolution plan shall identify for each group, the resolution entities and the resolution groups.
the information provided pursuant to regulation 11.
those resolution actions in respect
other group entities referred to in paragraphs (b), (c) and (d)
the definition "entity" in regulation 2
each resolution group and the implications
those actions on both the following: (
the group as a whole,
separate business lines or activities that are provided by a number
group entities, or
particular group entities or resolution groups, and identify any potential impediments to a coordinated resolution; (c) where a group includes entities incorporated in third countries, identify appropriate arrangements for cooperation and coordination with the relevant authorities
those third countries and the implications for resolution within the European Union; (d) identify measures, including the legal and economic separation
particular functions or business lines, that are necessary to facilitate group resolution when the conditions for resolution are met; (
funding in different Member States. The plan shall not assume any
the following: (i) extraordinary public financial support besides the use
the financing arrangements established in accordance with regulation 100; (ii) central bank emergency liquidity assistance; or (iii) central bank liquidity assistance provided under non-standard collateralisation, tenor and interest rate terms: Provided that those principles shall be set out on the basis
equitable and balanced criteria and shall take into account, in particular, regulation 107
the resolvability
the group under Article 16
the BRRD shall be carried out at the same time as the drawing up and updating
the group resolution plan in accordance with this regulation. A detailed description
the assessment
resolvability carried out in accordance with Article 16
the BRRD shall be included in the group resolution plan.
2021. 13.
the group entities including entities referred to in paragraphs (c) and (d)
the definition "entity" in regulation 2
subsidiaries; S.L. 371.15 (d) the European resolution authorities
the jurisdictions in which significant branches are located insofar as is relevant to the significant branch; (e) the relevant authorities referred to in regulations 6 and 7
the Supervisory Consolidation Regulations; and (f) the European resolution authorities
the Member States where the entities referred to in paragraphs (c) RECOVERY AND RESOLUTION [ S.L.330.09 and (d)
the definition "entity" in regulation 2
subsidiaries, European resolution authorities
the jurisdiction in which any significant branches are located, and to the relevant authorities referred to in regulations 6 and 7
the Supervisory Consol idation Regulations, shall include as a minim um all information that is relevant to the subsidiary or significant branch. The information provided to the EBA shall include all information that is relevant to the role
the EBA in relation to the group resolution plans. In the case
information relating to third-country subsidiaries, the Resolution Committee in its capacity as grouplevel resolution authority shall not be obliged to transmit that information without the consent
the relevant third-country authority.
group resolution plans third-country resolution authorities
jurisdictions in which the group has established subsidiaries or financial holding companies or significant branches as referred to in Article 51
the CRD.
the group including any group entity, that could have a material effect on or require a change to the plan.
the group resolution plan shall take the form
a joint decision: (a) where the Resolution Committee is the group-level resolution authority,
the Resolution Committee and the European resolution authorities
subsidiaries; or (b) where the resolution authority is responsible for a subsidiary,
the Resolution Committee, the European resolution authority acting as the group-level resolution authority, and the European resolution authorities
other subsidiaries, if any: Provided that, the joint decision shall be made within four months
the date
the transmission by the group-level resolution authority
the information referred to in sub-regulation
Regulation (EU) No 1093/2010: Provided further that, where a group is composed
more than one resolution group, the planning
the resolution actions referred to in paragraph (aa)
regulation 12
a joint decision between the Resolution Committee and the European resolution authorities
subsidiaries within four months, the Resolution Committee shall make its own decision on the group resolution plan. The decision shall be fully reasoned and shall take into account the views and reservations
the relevant European resolution authorities. The decision shall be provided to the Union parent undertaking by the Resolut ion Co mm ittee acting as the group-l evel resolut ion authority: Provided that, subject to Article 13
the BRRD, where the Resolution Committee is the group-level resolution authority, if, at the end
the four-month period, any
the authorities mentioned in sub-regulation
Regulation (EU) No 1093/2010, the Resolution Committee in its capacity as the group-level resolution authority shall defer its decision and await any decision that the EBA may take in accordance with Article 19
that Regulation, and shall take its decision in accordance with the decision
the EBA. The four-month period shall be deemed to be the conciliation period within the meaning
that Regulation. The matter shall not be referred to the EBA after the end
the fourmonth period or after a joint decision has been reached. In the absence
an EBA decision within one month, the decision
the Resolution Committee in its capacity as the group-level resolution authority shall apply.
a joint decision between the authorities mentioned in sub-regulation
entities under its jurisdiction. When in disagreement, the Resolution Committee, in its capacity as the resolution authority responsible for the subsidiary, shall substantiate its disagreement and shall provide full reasons for each individual decision. It shall set out the reasons for disagreeing with the proposed group resolution plan and shall take into account the views and reservations
the Authority and the other European regulatory authorities and European resolution authorities. The Resolution Committee shall notify its decision to the other members
the resolution college: Provided that, subject to Article 13
the BRRD, where RECOVERY AND RESOLUTION [ S.L.330.09 the Resolution Committee is responsible for a subsidiary, if, at the end
the four-month period, any
the authorities mentioned in sub-regulation
Regulation (EU) No 1093/2010, the Resolution Committee shall defer its decision and await any decision that the EBA may take in accordance with Article 19
that Regulation, and shall take its decision in accordance with the decision
the EBA. The four-month period shall be deemed to be the conciliation period within the meaning
that Regulation. The matter shall not be referred to the EBA after the end
the four-month period or after a joint decision has been reached. In the absence
an EBA d e c i s i o n w i t h i n o n e m o n t h , t h e d e c i s i o n o f t he R e s o l u t io n Committee, where it is responsible for a subsidiary, shall apply.
the BRRD, the Resolution Committee and the other European resolution authorities which do not disagree with such a decision may reach a joint decision on a group resolution plan covering entities licensed in terms
the Banking Act and the Investment Services Act as well as those entities authorised by the European regulatory authorities mentioned in this sub-regulation.
a joint decision in accordance with Article 13
the BRRD, shall be recognised as conclusive and applied by the Resolution Committee.
the date
transmission, request the EBA to assist the authorities mentioned in sub-regulation
Regulation (EU) No 1093/2010 unless the Resolution Committee assesses that the subject matter under disagreement may in any way impinge on Malta’s fiscal responsibilities. The four-month period shall be deemed to be the conciliation period within the meaning
Regulation (EU) No 1093/2010. The matter shall not be referred to the EBA after the end
the four-month period or after a joint decision has been reached. In the absence
an EBA decision within one month, the decisions
the European resolution authority acting as the grouplevel resolution authority taken in accordance with Article 13
t h e B R R D a n d , o r, o f t h e E u r o p e a n r e s o l u t i o n a u t h o r i t i e s responsible for subsidiaries taken in accordance with Article 13
the BRRD shall apply.
Malta or
its Member State respectively, the Resolution Committee, in its capacity as the group-level resolution authority, shall initiate a reassessment
the group resolution plan, including the minimum requirement for own funds and eligible liabilities. Cap. 371. Cap. 370. 33 34 [ S.L.330.09 Transmission
resolution plans to the competent authorities. RECOVERY AND RESOLUTION 14.
resolvability for institutions. 15.
the jurisdictions in which significant branches are located insofar as is relevant to the significant branch, it shall assess the extent to which an institution, which is not part
a group, is resolvable without the assumption
any
the following: (a) extraordinary public financial support besides the use
the financing arrangements established in accordance with regulation 100; (
broader financial instability or system wide events,
Malta, or other Member States or the European Union and with a view to ensuring the continuity
critical functions carried out by the institution. The Resolution Committee shall notify the EBA in a timely manner whenever an institution is deemed not to be resolvable.
the assessment
resolvability referred to in sub-regulation
the Schedule to these regulations.
the drawing up and updating
the resolution plan in accordance with regulation 10. Assessment
resolvability for groups. Amended by: L.N. 6
2021. 16.
subsidiaries; or (b) where it is responsible for a subsidiary, together with the European resolution authority acting as the grouplevel resolution authority and the European resolution authorities
other subsidiaries, if any, RECOVERY AND RESOLUTION [ S.L.330.09 35 after consulting the Authority and the European regulatory authorities in their capacity as either the consolidating supervisor, or where responsible for such subsidiaries, and the European resolution authorities
the jurisdictions in which significant branches are located insofar as is relevant to the significant branch, shall assess the extent to which groups are resolvable without the assumption
any
the following: (i) extraordinary public financial support besides the use
the financing arrangements established in accordance with regulation 100; (ii) central bank emergency liquidity assistance; (iii) central bank liquidity assistance provided under non-standard collateralisation, tenor and interest rate terms: Provided that, a group shall be deemed to be resolvable if it is feasible and credible for the Resolution Committee and the relevant European resolution authorities to either wind up group entities under normal insolvency proceedings or to resolve group entities by applying resolution tools and powers to resolution entities
that group while avoiding, to the maximum extent possible, any significant adverse consequences on the financial system, including in circumstances
broader financial instability or system wide events
Malta and, or
the Member States in which the other group entities or branches are situated, or other Member States or the European Union, with a view to ensuring the continuity
critical functions carried out by the group entities, where they can be easily separated in a timely manner or by other means. Where the Resolution Committee acts as the group-level resolution authority, it shall notify the EBA in a timely manner whenever a group is deemed not to be resolvable.
the assessment
group resolvability, the Resolution Committee shall, as a minimum, examine the matters specified in Section C
the Schedule to these regulations: Provided that the assessment
group resolvability under this regulation shall be made at the same time as, and for the purposes
drawing up and updating
the group resolution plans in accordance with regulation 12. The assessment shall be made under the decision-making procedure laid down in regulation 13.
more than one resolution group, the Resolution Committee shall, together with the authorities referred to in sub-regulation
each group in accordance with this regulation: Provided that, the assessment referred to in this sub-regulation shall be performed in addition to the assessment
resolvability
the entire group and shall be made within the decision-making procedure laid down in regulation 13. 16A.
the requirements referred to in points (a), (b) and (c)
the CRD, but it fails to meet the combined buffer requirement when considered in Power to prohibit certain distributions. Added by: L.N. 6
2021. 36 [ S.L.330.09 RECOVERY AND RESOLUTION addition to the requirements referred to in regulations 45C and 45D, when calculated in accordance with paragraph (a)
regulation 45
the following actions: (
the following elements: (a) the reason, duration and magnitude
the failure and its impact on resolvability; (b) the development
the entity’s financial situation and the likelihood
it fulfilling, in the foreseeable future, the condition referred to in paragraph (a)
regulation 32
the CRR, or in regulations 45B or 45F
the power referred to in subregulation
addressing the situation
the entity, taking into account its potential impact on both the financing conditions and resolvability
the entity concerned. Provided that, the Resolution Committee shall repeat its assessment
whether to exercise the power referred to in sub-regulation
the following conditions are met: (a) the failure is due to a serious disturbance to the functioning
financial markets which leads to broadbased financial market stress across several segments
financial markets; (
the own funds instruments and eligible liabilities instruments
the entity or increased costs for the entity, but also leads to a full or partial closure
markets which prevents the entity from issuing own funds instruments and eligible liabilities instruments on those markets; (
the power referred to in sub-regulation
the banking sector, thereby potentially undermining financial stability: Provided that, where the exception referred to in this sub-regulation applies, the Resolution Committee shall notify the Authority
its decision and shall explain its assessment in writing: Provided further that, every month, the Resolution Committee shall repeat its assessment
whether the said exception applies.
eligible liabilities shall be reduced by any amount resulting from any
the actions referred to in sub-regulation
: (a) any interim profits not included in Common Equity 37 38 [ S.L.330.09 RECOVERY AND RESOLUTION Tier 1 capital pursuant to Article 26
the CRR, net
any distribution
profits or any payment resulting from the actions referred to in sub-regulation
the CRR, net
any distribution
profits or any payment resulting from the actions referred to in sub-regulation
the requirements set out in Article 92a
the CRR and in regulations 45C and 45D, expressed as a percentage
the total risk exposure amount calculated in accordance with Article 92
the CRR, is within the first (that is, the lowest) quartile
the combined buffer requirement, the factor shall be 0; (b) where the Common Equity Tier 1 capital maintained by the entity which is not used to meet any
the requirements set out in Article 92a
the CRR and in regulations 45C and 45D, expressed as a percentage
the total risk exposure amount calculated in accordance with Article 92
the CRR, is within the second quartile
the combined buffer requirement, the factor shall be 0,2; (c) where the Common Equity Tier 1 capital maintained by the entity which is not used to meet the requirements set out in Article 92a
the CRR and in regulations 45C and 45D, expressed as a percentage
the total risk exposure amount calculated in accordance with Article 92
the CRR, is within the third quartile
the combined buffer requirement, the factor shall be 0,4; (d) where the Common Equity Tier 1 capital maintained by the entity which is not used to meet the requirements set out in Article 92a
the CRR and in regulations 45C and 45D, expressed as a percentage
the total risk exposure amount calculated in accordance with Article 92
the CRR, is within the fourth (that is, the highest) quartile
the combined buffer requirement, the factor shall be 0,6; The lower and upper bounds
each quartile
the combined buffer requirement shall be calculated as follows: RECOVERY AND RESOLUTION [ S.L.330.09 39 Lower bound
quartile = Combined buffer requirement x (Q n - 1) 4 Upper bound
quartile = Combined buffer requirement x Q n 4 where "Q n" refers to the ordinal number
the quartile concerned. 17.
resolvability for an entity is carried out in accordance with regulations 15 and 16, and where the Resolution Committee, after consulting the Authority, determines that there are substantive impediments to the resolvability
that entity, the Resolution Committee shall notify in writing such determination to the entity concerned, to the Authority and to the European resolution authorities
the jurisdictions in which significant branches are located.
the date
receipt
a notification made in accordance with sub-regulation
the date
receipt
a notification made in accordance with sub-regulation
the following situations: (a) the entity meets the combined buffer requirement when considered in addition to each
the requirements referred to in points (a), (b) and (c)
the CRD, but it does not meet the combined buffer requirement when considered in addition to the requirements referred to in regulations 45C and 45D when calculated in accordance with paragraph (a)
regulation 45
the CRR or the requirements referred to in regulations 45C and 45D: Provided further that, the timeline for the implementation
measures proposed under paragraph Powers to address or remove impediments to resolvability. Amended by: L.N. 6
2021. 40 [ S.L.330.09 RECOVERY AND RESOLUTION (b)
the first proviso hereof shall take into account the reasons for the substantive impediment: Provided further that, the Resolution Committee shall, after consulting the Authority, assess whether the measures proposed under paragraphs (a) and (b)
the first proviso hereof effectively address or remove the substantive impediment in question.
the measures on the business
the entity, its stability and its ability to contribute to the economy.
sub-regulation
the following measures: (a) require the entity to revise any intra-group financing agreements or review the absence thereof, or draw up service agreements, whether intra-group or with third parties, to cover the provision
critical functions; (
new or existing business lines or sale
new or existing products; (g) require changes to legal or operational structures
the entity or any group entity, either directly or indirectly under its control, so as to reduce complexity in order to ensure that critical functions may be legally and operationally separated from other functions through the application
the resolution tools; (
the definition "entity" in regulation 2
regulations 45E or 45F, expressed as a percentage
the total risk exposure amount calculated in accordance with Article 92
the CRR and, where applicable, with the combined buffer requirement and with the requirements referred to in regulations 45E or 45F, expressed as a percentage
the total exposure measure referred to in Articles 429 and 429a
the CRR; (
the definition "entity" in regulation 2
regulations 45E or 45F; (
the definition "entity" in regulation 2
the Resolution Committee to write down or convert that liability or instrument would be effected under the law
the jurisdiction governing that liability or instrument; (ja) for the purpose
ensuring ongoing compliance with regulations 45E or 45F, require an institution or entity referred to in paragraphs (b), (c) or (d)
the definition "entity" in regulation 2
: (
the Authority, and eligible liabilities referred to in regulation 45B and in paragraph (a)
regulation 45F
a mixed-activity holding company, requiring that the mixed-activity holding company set up a separate financial holding company to control the entity, if necessary in order to facilitate the resolution
the entity and to avoid the application
the resolution tools and the exercise
the powers referred to in regulations 31 to 86, both inclusive, having an adverse effect on the non-financial part
the group.
appeal.
those measures on the particular entity, on the internal market for financial services, and on the financial stability in other Member States and in the Union as a whole. Powers to address or remove impediments to resolvability: group treatment. Amended by: L.N. 6
2021. 18.
subsidiaries; or (b) where it is responsible for a subsidiary, together with the European resolution authority acting as the grouplevel resolution authority and the European resolution authorities
other subsidiaries, if any, after consulting the supervisory college and the European resolution authorities
the jurisdictions in which significant branches are located insofar as is relevant to the significant branch, consider the assessment required by regulation 16 within the resolution college and shall take all reasonable steps to reach a joint decision on the application
measures identified in accordance with regulation 17
"entity" under regulation 2
the group.
Regulation (EU) No 1093/2010, prepare and submit a report to the Union parent undertaking, to the European resolution authorities
subsidiaries, which will provide it to the subsidiaries within their remit, and to the European resolution authorities
jurisdictions in which significant branches are located. The report shall be prepared after consulting the Authority and the relevant European regulatory authorities, and shall analyse the substantive impediments to the effective application
the resolution tools and the exercising
the resolution powers in relation to the group and in relation to resolution groups where a group is composed
more than one resolution group. The report shall consider the impact on the group’s business model and recommend any proportionate and targeted measures that, in the Resolution Committee’s view, in its capacity as the group-level resolution authority, are necessary or appropriate to remove those impediments: Provided that, where an impediment to the resolvability
the group is due to a situation
a group entity referred to in the proviso
regulation 17
the said impediment to the Union parent undertaking, after consulting the European resolution authorities
the resolution entity and
its subsidiary institutions.
the BRRD, provide such a report to the subsidiary under its supervision.
the date
receipt
the report referred to in sub-regulation
a group entity referred to in the first proviso
regulation 17
the date
receipt
a notification made in accordance with the proviso
sub-regulation
the CRR and, where applicable, with the combined buffer requirement, and with the requirements referred to in the said regulations 45E and 45F expressed as a percentage
the total exposure measure referred to in Articles 429 and 429a
the CRR: Provided further that, the timeline for the implementation
the measures proposed the first proviso shall take into account the reasons for the substantive impediment. The Resolution Committee shall, after consulting the Authority, assess whether those measures effectively address or remove the substantive impediment. Provided further that, the Resolution Committee shall, in its capacity as the group-level resolution authority, communicate any measure proposed by the Union parent undertaking to the consolidating supervisor, the EBA, the European resolution authorities
the subsidiaries and the European resolution authorities
the jurisdictions in which significant branches are located insofar as is relevant to the significant branch.
the subsidiaries; or (b) where it is responsible for a subsidiary, together with the European resolution authority acting as the grouplevel resolution authority and the European resolution authorities responsible for the other subsidiaries, if any, after consulting the Authority and the European regulatory and resolution authorities
jurisdictions in which significant branches are located, do everything within their power to reach a joint decision within the resolution college regarding the identification
the substantive impediments, and if necessary, the assessment
the measures proposed by the Union parent undertaking and the measures required by the authorities in order to 43 44 [ S.L.330.09 RECOVERY AND RESOLUTION address or remove the impediments, which shall take into account the potential impact
the measures in Malta and in all the Member States where the group operates: Provided that, the joint decision shall be reached within four months
submission
any observations by the Union parent undertaking. Where the Union parent undertaking has not submitted any observations, the joint decision shall be reached within one month from the expiry
the four-month period referred to in sub-regulation
sub-regulation 17
the submission o f any observations by t he Union parent undertaking in accordance with sub-regulation
the second paragraph
Regulation (EU) No 1093/2010.
a joint decision within the period referred to in the first proviso to sub-regulation
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.